MENO
TO; Finance Committee. DATE: August 7, 1981

FROM: J. Maitland,
City Treasurer.

KE: ASSESSMENT METHODS

There are theee assessment Options being 'A’, 'C’ and "DS,

In each option the properties are assessed at actual values, the
differences being the percentage taxable for the various classes of
properties.

Option 'A' - The percentage taxable is set dy the Province and
varies asongst the different classes of properties.
This system is used threughout the Province for
school and regional tax purposes. The percentages
set down by the Province have been:
19801979

Residential 14.5% 15%

Utilities 30 30

Prisary Industrial 30 30

Light Industrial 25 25

Comercial 25 25

We

Option 'C' - The percentage taxable varies for each class of
Property but is such that there will not be a tax
shift from the previous relationship between the
property classes except for new construction.

All classes of properties are treated equally and
taxes on the same basis. The percentage taxable
can be set by Council but must be the same for all
classes of property.

The City in 1977 chose to go with Option 'D' the reasoning being:

1, That properties of equal value should be taxed equally.

2. This method provides less taxes than the other options for
Commercial and industrial properties. At that time it was

thought that thie might provide an incentive for comercial
and industrial growth.

THE CORPORATION OF THE CITY OF PORT COQUITLAH

-2-

That Option ‘A’ would be subject to the whim of the
Provincial Governsent.

Attached are tables vhich
"Source of General Taxes’ - this shows in total where
our general taxes come or would come fron.

"Percentage of General Taxes’ - this again shows where
Our general taxes come From, and the overall shift which
would result if we changed options.

‘General tax comparison’ ~ this is a table of house values
in the surrounding areas and the taxes which would be paid
on the given values. Please note the values are atrived

at by taking a mid-1980 average house sales price aad in no
way would this be taken as a List of comparable or equiva-
lent properties; average properties vithin cach given area
would be more like it. :
Attachment 4 shows what the taxes could be on a $109,660
property and how the taxes vould change if we changed
options.

If Council is considering changing options I would Suggest that ve

hoid off until late Septenber or early October at which tine we will have
studies for our 1982 assessment roll frog the Assessment Authority.

J. Maizland.

IM/as
Attachnents.

* Loam now 4old these edudies will nat be awilasle vatil
the end of Octoter and Simen & ky law must be in
place, by Noemkce 16"0 decision shavld ke nude
on the information now avwikble.

i Sept 16/94

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